In separate statements, the Mandaue Chamber of Commerce and Industry (MCCI), Talisay Chamber of Commerce and Industry (TCCI), and Cebu Chamber of Commerce and Industry (CCCI) urged the government to suspend excise taxes and value-added tax (VAT) on petroleum products to help cushion the impact of soaring fuel prices driven by tensions in the Middle East.
Intervention needed
“The executive branch must move with greater speed in rolling out concrete relief measures that directly address the mounting pressure on both consumers and enterprises,” said Carl Cabusas, TCCI president.
One crucial intervention is the suspension or reduction of excise taxes on petroleum products, which would lessen the impact of the rising fuel costs brought about by the ongoing conflict.
Barbara Gothong, MCCI president, said that aside from suspension on excise taxes and VAT on fuel products, efforts must be made to secure alternative and sustainable energy sources.
“At this critical juncture, timely and coordinated action will be essential to cushion the impact on businesses and consumers, and to safeguard economic resilience moving forward,” she added.
Working together
The CCCI, headed by its president, Regan Rex King, urged the government to ensure consistent price regulation and supply monitoring in Cebu. Any measures including taxation, regulations, or fees should be coordinated within existing legal frameworks to ensure fairness, effectiveness, and compliance, King said.
The group also called on businesses to act with integrity and restraint and to always bear in mind that hoarding, price gouging, or other exploitative practices will harm the community.
At the same time, the local business community must take a proactive stance by optimizing operations, managing resources prudently, and adopting cost-saving measures to ensure Cebu enterprises remain competitive, adaptive, and strategically positioned in the global market.
“By working together, Cebu can stay prepared, adaptive, and competitive. Through cooperation, discipline, and a shared vision for a forward-looking, sustainable, and globally relevant future, we can overcome this challenge - and emerge stronger than ever,” the CCCI said.
State of energy emergency
President Marcos Jr. has signed Executive Order (EO) No. 110, declaring a state of national energy emergency amid the ongoing conflict in the Middle East and uncertainties over fuel supply.
In line with the EO, the Department of Energy (DOE) has directed power sector stakeholders to implement fuel conservation and prioritization measures to safeguard the stability of the country’s electricity supply while mitigating the impact of rising global fuel prices.
It covers generation companies, the National Grid Corporation of the Philippines, the Independent Electricity Market Operator of the Philippines, distribution utilities, electric cooperatives, ancillary service providers, and other WESM trading participants.
Economy’s lifeblood
According to Cabusas, the declaration had been anticipated, but it should have been issued earlier to better enable the business sector, particularly MSMEs, to prepare and implement mitigating strategies ahead of the current escalation.
“Early signals and decisive action are critical in allowing businesses to recalibrate operations, manage costs, and secure supply chains in times of global uncertainty,” he said.
He pointed out that, especially for MSMEs that are highly sensitive to price fluctuations, timely and targeted support will be key to sustaining operations and preserving local economic stability.
Gothong, for her part, said the declaration of a state of national energy emergency, while significant, comes at a time when the country has already been grappling with persistent disruptions in its energy supply chain.
Still, she added, it underscores the urgency of addressing vulnerabilities that have long impacted fuel stability.
“Energy remains the lifeblood of the economy, and the uncertainty surrounding supply sources is deeply concerning. This situation is expected to have a cascading effect on inflation, employment, and ultimately, the country’s overall competitiveness,” said Gothong.
Conservation efforts
Energy Secretary Sharon S. Garin signed an advisory on March 25 outlining urgent measures to conserve fuel inventories, improve dispatch efficiency, and reduce the power sector’s exposure to external supply shocks, according to a Department of Energy (DOE) statement.
Amid rising fuel prices, initial simulations by the Independent Electricity Market Operator of the Philippines (IEMOP) show that average Wholesale Electricity Spot Market (WESM) prices could exceed P9 per kilowatt-hour, up from the pre–Middle East conflict average of P5 per kilowatt-hour or lower.
Power supply sourced through bilateral contracts is expected to increase as fuel prices continue to rise, the statement said.
The full dispatch of indigenous energy sources and coal-fired power plants is projected to help cushion the increase in WESM prices by up to P2 per kilowatt-hour.
The advisory outlines urgent measures to preserve fuel inventories, strengthen coordination on fuel availability, improve system dispatch under emergency conditions, and reduce the power sector’s exposure to external supply disruptions and elevated global fuel prices.
Fuel inventory
The advisory also directed generation companies to closely monitor fuel inventories, comply with the mandated 15-day fuel reserve requirement, and immediately report any actual or potential supply risks to the DOE for assessment and possible intervention.
Power generators were likewise instructed to explore feasible fuel alternatives to support cost mitigation and ensure supply adequacy.
These include the use of higher biodiesel blends for oil-based plants and coal blending—mixing different types of coal—or co-firing, which combines coal with locally available feedstock such as biomass, subject to technical, operational, and environmental requirements.
The DOE said these measures are intended to moderate the impact of sustained increases in global fuel prices, which could otherwise place significant upward pressure on WESM prices. —Ed: Corrie S. Narisma
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